17, January 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General Overview

The Euro fell versus the dollar at yesterday’s trades. Obviously the good performance of the American economy leveled fears that a weak U.S. employment report could stop the collapse of mitigation programs. The data on the Eurozone economy showed positive trends, but the details disappointed the market. The pair tested the support at the level 1.3550–1.3640. If it is hold again above its lower boundary, risks will remain buoyant, and there will be the possibility of an upward trend with the purpose of fixing above resistance 1.3830 and testing the level 1.4000.

The pair could return above the range of support 1.3590-1.3635, that increased greatly the probability of the new growth formation with the aim of fixing above the resistance 1.3830 and testing the level 1.4000.

We have a southern movement. The sell signal is confirmed and weak. The price is in the cloud and above the Chinkou Span.

The downward movement will be until the Kijun-Sen is above the price. Kijun-Sen is horizontal and Tenkan Sen are directed upwards.

Bollinger Bands are turning up.
MACD is in a negative area, the histogram is descending.

Trading recommendations

The pair continues falling. It is at the level 1.36, just below the cloud. If EUR/USD breaks the level down and consolidates below it we can say that the downtrend will be continued with the target – 1.3540.